Tenancy deposit scheme alternative

[resident]

Great news, landlords can now avoid the cost and hassle of joining a tenancy deposit protection scheme by accepting tenants that belong to the Tenant Guarantee Scheme. This offers better financial protection than a deposit, pre-screened tenants and at absolutely no cost to landlords. For details of this revolutionary new approach go to the schemes official new website www.iguarantee.co.uk.

[lynseyinlondon]

I see the purpose of the tenants deposit scheme but I just don't see it working in practice....there are so many legal hoops to jump through.

After 16 years of letting I am dissappointed to see the government trying to force such a scheme onto landlords. It will not be good for small landlords trying to build up a portfolio and really only operational by letting agents, landlords with plenty of time or people with such a large portfolio you can employ someone to operate the scheme for you.

I will comply if I have to, but the paperwork seems mind boggling.

I am seriously considering asking a greater proportion of rent in advance when a tenant moves in, for example three months....of course this would mean that the rental period of my tenancies would become three monthly and the tenants would have to find the rent up front at the start of each three month period. Have any of you out there considered or tried such a thing?

[Matthew]

I've got to admit I have considered doing the same, increasing from one month in advance to two months and reduce the amount in the deposit significantly knowing that you will never try and get it as it is not worth the time anyway, but having it there purely as a deterrant.

Interesting to know what other poeple are doing.

[resident]

For more information on Tenancy Deposit Schemes go to http://www.residentiallandlord.co.uk/tenan...ositschemes.htm

[Trenners]

Hi All,

I don't really understand what all the fuss is about. Instead of paying the Security Deposit into my bank account - I pay the Security Deposit into somebody elses bank account (ie: The custodian scheme account).

I then tell my tenant that their deposit has been protected by the custodian scheme.

I appreciate that I will lose the interest on the Security Deposit but, to be fair, the interest really belongs to the tenant anyway (because the Security Deposit is money belonging to the tenant).

I know that some landlords are thinking about asking for more rent in advance - but rent is rent and a Security Deposit is a Security Deposit. In other words - you cannot use additional rent in advance to deduct monies for damage caused to the property because that would mean that the additional rent was, in fact, a Security Deposit all along - which would mean that you would have broken the law by not securing it in a protection scheme.

Mark

[roppa]

exactly right... from what i have been reading up on. taking "extra" rent at the start of a tenancy would just mean that at the end, if the tenant is fully paid up, you would have to give them the extra rent back.

what if there are damage's ?? you can not take the damage's from the rent, if you do. bad things will happen.

some of my landlords that i look after properties for are coming up with various sugestions to try and get around this. for one, am quite happy with the introduction. to many times my landlords have came up with crap excuses as to hold the deposit from a tenant, and it is the agent that suffers. do you annoy a landlord to whom you get your bussiness from, or a leaving tenant that you will more than likly never see again, but takes with them the point of veiw that the "agent" is the one that did not refund the money to them.

i mainly operate in the bottom end of the market, and the majority of the tenant's i have , there is NO way i would put a tenant into a property without taking a depostit off them. and taking a level of advanced rent in my opinion is just opening landlords / agents open to having to refund this overpayment of rent back to the tenant, even though they might have damaged the property.

[Simon Dewsberry]

I disagree - If you are holding money on a tenants account and you have a credit figure and along side a debit figure for damage then i would re imburse the difference - especailly as if i had a damage figure i would also have issued an invoice for damage amount -payable within 14 days - If payment had not been received then it would be deducted from credit balance thus saving tenant admin fees for reminder letters and interest on balances not paid. SIMPLE! How good am i to tenants eh!

And with the "new" bond system no arguing about it -just the Landlord back where he should be - in control !

If tenant doesn't like it then leave the debit on the account, add interest until the end of the term then apply to deduct higher figure from bond at the end ! or give them the option to pay cash for damages immediately!

This is all going to get very interesting as time goes on - If a tenant creates a damage bill that is less than his bond simply dispute the whole bond value and tell him when he pays the bill in cash you will inform the bond bank that there is no issue and to return the bond - With £700-£1000 AT STAKE OVER A £20 CLEANING BILL HE WILL PROBABLY COME AND PAY YOU !

In this life to beat a prat you sometimes have to become a prat!

This is not how i like to conduct business but the above is far better than arguing, trucking to court god knows how many times a year and waiting months and months for your money ?!

hopefully there will be so much chaos it will be scrapped !

Simon